The group has entered into an agreement that will see F.O Twenty-Four Ltd, which is backed by Frasers Group, acquire the Boom Battle Bar business for a total consideration of up to £11m.
XP Factory will receive upfront cash consideration of £5m, used to reduce bank net debt and fund its working capital position and growth programme, and up to £6m from sales and EBITDA earn-outs over the next three years.
The group says the disposal ‘represents an important strategic step’.
Following completion of the sale, it claims it will have ‘a substantially strengthened balance sheet’ to support its target of reaching at least 50 UK owned Escape Hunt sites and sales of at least £30m by the end of March 2031.
The group adds that it sees long-term potential of 100-plus Escape Hunt sites.
Challenging conditions
It comes after XP Factory noted that Boom Battle Bar continued to face challenging market conditions in its recent financial results.
Underlying revenue across the brand’s estate, which encompasses 29 UK sites, increased 2% to £42.8m for the year ended 29 March 2026, supported by acquisitions and new openings, but like-for-like sales fell 8%, slightly ahead of a 9% decline recorded across the wider competitive socialising sector.
By contrast, Escape Hunt continued to be the standout performer within the group.
Revenue at the owner-operated business rose 11% to £15.8m over the year, with UK like-for-like sales increasing 4.6%.
Site-level EBITDA margins remained strong at 42%, despite inflationary pressures.
XP Factory says it believes Boom Battle Bar remains “well positioned as industry consolidation accelerates” but the timing and pace of a broader market recovery remains uncertain.
Important milestone
“This transaction marks an important milestone for XP Factory,” says Richard Harpham, chief executive of XP Factory.
“We are extremely proud of what we have achieved with Boom, growing it from a small, early-stage business into one of the UK’s leading competitive socialising brands. The market has faced significant headwinds in recent years, but Boom has a strong brand, a scaled estate and an excellent team, and we believe it is well positioned to benefit as market conditions recover.
“The disposal allows us to sharpen our focus on Escape Hunt, a business which has demonstrated the strength of its model through consistent and attractive returns. Escape Hunt has established a clear leadership position in the UK, while still having significant whitespace ahead of it, and we are excited by the opportunity to further build on that position.”
Following completion today (28 September), Escape Hunt and Boom will continue to operate alongside one another at seven co-located sites, pursuant to the existing lease terms and with each business retaining its existing presence and signage.
The parties have agreed arrangements in respect of the future occupation and operation of these sites, including the sharing of relevant property costs.
